Liability of foreigners to pay 100% tax on acquiring properties
published by admin on Thu, 08/11/2011 - 20:52
If a non citizen (foreigner) or a Company incorporated in Sri Lanka with more than 25% of foreign participation in the equity of such company purchase an immovable property in Sri Lanka a tax of such amount as is equivalent to the value of that property shall be paid to the central government of Sri Lanka subject to certain exceptions mention below.
Exceptions : Any land the ownership of which is transferred to an enterprise to which the Board of Investment of Sri Lanka has granted authorization in writing to set up on such land
a) a project for the construction of not less than 100 residential housing units, each constructed on land not exceeding 10 perches inclusive of appurtenant land, or a condominium property within the meaning of the Apartment Ownership Law comprising not less than 100 units for residential or non-residential accommodation, provided that the total value of said land is met by inward remittance of foreign currency.
b) a project for the construction and operation of a hospital or a hotel provided that the total value of said land is met by inward remittance of foreign currency and that the investment on the project be not less than 10 Million USD or its equivalent in Sri Lanka Rupees.
c) a project relating to infrastructure development or any other development determined by the minister as being essential for the economic progress of Sri Lanka, provided that the value of said land is met by inward remittance of foreign currency and the investment on the project be not less than 50 Million USD or its equivalent in Sri Lanka Rupees.